5 Things You Should Start Doing Now to Plan for Retirement

Planning for retirement should make you feel empowered, but many people procrastinate because they’re afraid. They worry that starting to plan will raise more questions and create more stress and uncertainty about what they don’t know. We can move beyond this! By tackling the process strategically and keeping a positive attitude, it’s possible to accomplish your short- and long-term financial goals.

1. Make a plan.

This holds the number one spot for a reason. You’d be surprised how many people don’t have a plan for retirement. If that’s you, rest assured that you are not alone. Day-to-day responsibilities keep most of us busy, and as long as we’re putting money aside in a savings or retirement account each month, it might feel like we’re doing enough to prepare for life after work. 

Saving money is a wonderful place to start when planning for retirement. But that’s what it is, a starting place. To make the most of your retirement and enjoy it with peace of mind, you need to be strategic in the days, months, years and decades leading up to your last day on the job. Without strategy, money sits around when it could be working hard for you while you’re still working hard, too. 

Here’s a basic plan to get you started.

• Define in how many years you’d like to retire. Then, over that time period:
  • Identify your sources of income.
  • Estimate your expenses.
  • List your savings plan.
  • Estimate your future cash flow.
  • Define your target for retirement savings.
  • Know your desired lifestyle after retirement.

2. Set optimistic but realistic goals.

Become the Goldilocks of goal-setting. Too optimistic and you’ll fall short of where you want to be. Not shooting high enough and you could make unnecessary sacrifices. You’re looking for the right balance of daydream and down-to-earth. Most of us know in our gut what’s truly possible, what’s a stretch and what we realistically cannot attain. Key in on what’s possible and what’s a stretch. Getting the right advice can help you achieve those stretch goals.

3. Keep an open mind and a positive attitude.

Retirement planning doesn’t need to be complicated. But, it’s also not one-size-fits-all. The most livable, successful retirement plans are those that are both clearly defined and adaptable to your own lifestyle.

There’s more than one way to get where you want to go. One of the biggest threats to your retirement success is letting discouragement get in the way of following through on building a plan for your future. There are solutions for almost any circumstance. So stay positive and get excited to reach your goals!

4. Throw out preconceived notions.

A preconceived notion is defined as an opinion formed beforehand without adequate evidence. So much misinformation persists out there about the best ways to plan for retirement. Maybe it’s what you read on the internet, or through talking to friends at social gatherings. Everyone has advice on what you should do, where you should invest and how you should plan. It can quickly turn into information overload.

There absolutely are some best practices, like taking full advantage of your employer’s 401(k) matching program, and investing early to reap the benefits of compound interest. But it’s important to examine every decision in the context of your own financial landscape.

5. Build your team.

The same way our lives depend on relationships, your financial growth is highly influenced by the team you build to support your goals. Trusting the people you take advice from is essential. Working with specialists on retirement planning should never feel like you’re handing over the keys to your financial future and taking a seat on the passenger side. The right team should act as trusted advisors who guide you towards wise financial decisions for you and your family. This type of relationship requires creativity, collaboration and a shared understanding of where you want to go and the best plan to get there. You deserve peace of mind when it comes to managing your hard-earned money.

By getting started, you’re doing the right thing for your future. Take a deep breath, and dive in.